Small Liquor Store business plan for starting your own business

One of the most lucrative businesses that you can get into right now is a small liquor store. That’s why we have brought this business plan for a liquor store so that you can easily start your own business. This business does not require a lot of starting capital or any experience.

If you are looking to learn how to write a business plan for a liquor store, you are in the right place. We will introduce you to all the aspects of writing such a business plan and will also give you a franchising business plan that you can use to expand your business after you start making profit out of it. This will be somewhat similar to a microbrewery business plan.

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Small Liquor Store Business Plan Summary

2.1 The Business

This business plan for starting a liquor store will be based on the example of Harry’s Liquor Outlet, a small liquor store situated outside Detroit, Michigan. The business will be registered and licensed to sell Liquor.

2.2 Management of Small Liquor Store


If you want to know how to start a business plan for a liquor store, the most important thing for you to learn is the management of the business. Harry’s Liquor Outlet will be headed and owned by Harry Castle, a former bar tender. He will hire a cashier and a manager to run the store.

The manager will oversee all the operations of the bar will any matters that arise. The supreme authority in this business plan startup liquor store will rest with Harry and his verdict will be final in any matter regarding the business.

2.3 Customers of Small Liquor Store

The next thing that you need to consider when writing a writing business plan for investors is determining the customers of the business who will bring in all the money. Just like a distillery business plan, the main customers here will be the people looking for alcohol.

2.4 Business Target

Our targets are:

  • To establish and maintain more than 95% customer satisfaction score.
  • To start generating at least $23k in profit a month in 2 years.
  • To expand to at least three more cities by the end of the 3rd
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Small Liquor Store Business Plan - 3 Years Profit Forecast

Company Summary

3.1 Company Owner

Harry’s Liquor Outlet will be owned by Harry Castle. He knows this industry inside out as he has worked as a bar tender for more than 10 years. He has recently won a lottery and wants to invest the money and that’s why we are basing this wine and liquor store business plan on his business.

3.2 Why the Small Liquor Store is being started

The next thing to discuss in this liquor store business plan sample is the reason behind starting this business. As stated above, Harry has a lot of experience and interest in this business, so that is the main reason. Another reason for starting this business is that there is no good liquor store in the area and this market gap can be capitalized easily.

3.3 How the small liquor Store will be started

Step1: Create small liquor store business plan

The first needed to start a small liquor store is to have a valid liquor store business plan example pdf. All the aspects of the business from the starting costs to the staff required and the market to be targeted will be included in this business plan. Just like a brewery business plan, having figured out all the details of the business before starting is the most important thing if you want this business to be successful in the longer run.

Step2: Define The Brand

The next step is to make a brand. People these days like to shop from established brands rather than a simple shop. Advertisement and marketing will be used to make a presentable brand for Harry’s Liquor Outlet.

Step3: Establish Physical & Web Presence

We will have to make the store as well as a website. It is noted that more than 50% of the customers prefer to order their liquor online rather than going to a store. We will make a website to cater the needs of these customers.

Step4: Promote and Market

The last and the most important thing to do is to market the brand in such a way as to make it a household name in the area to attract as much business as we can.

Small Liquor Store Business Plan - Startup Cost
Start-up Expenses 
Research and Development$25,000
Expensed Equipment$51,000
Start-up Assets$322,000
Cash Required$345,000
Start-up Inventory$50,000
Other Current Assets$223,000
Long-term Assets$240,000
TOTAL ASSETS$1,180,000
Total Requirements$1,578,800
Start-up Expenses to Fund$398,800
Start-up Assets to Fund$1,180,000
Non-cash Assets from Start-up$1,552,000
Cash Requirements from Start-up$364,000
Additional Cash Raised$56,000
Cash Balance on Starting Date$33,000
TOTAL ASSETS$2,005,000
Liabilities and Capital 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$50,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,578,800
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$346,200
Total Funding$1,578,800
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    Services of Small Liquor Store

    The next point this liquor store business plan template needs to touch is the services it will be providing. You can use this business plan for existing liquor store or start a new business around it.

    The services of the liquor store will be focused more on products because this is more of a products business than a services one. The services of Harry’s Liquor Outlet will be:

    • Liquor Supply

    As there are no good liquor stores in the vicinity, all the retailers who sell liquor in the area will be buying it from us. We will deliver them the products on weekly or monthly basis, as they prefer.

    We will also supply liquor to retail customers, bars, and for parties.

    • Signature Drinks

    We will experiment with different famous liquor drinks and brands and will make cocktails and our own signature liquors to bring diversity in the business.

    • Spirit Supply

    We will arrange and provide spirits for medical and cleaning use. This will not be a regular service and we will entertain these demands on request of buyers.

    • Remote Bar Services for parties

    Anyone looking to arrange a party in the area has to buy the liquor from other cities. We will cover all the parties in the area and will provide take-away and delivery services for party liquor supply.

     Marketing Analysis of a Small Liquor Store

    Marketing analysis refers to the process of conducting a thorough market research to determine whether or not starting a business makes economic sense. If you want to know how to write a business plan for a liquor store, you need to know how to do marketing analysis.

    Here are the details of the marketing analysis that we performed prior to starting a liquor store.

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    5.1 Market Trends

    One of the key reasons for we are going foropening a liquor store business is that this market is growing at a fast pace. The global liquor industry was worth $1.4 trillion in 2019 and is expected to be worth $2 trillion in the year 2024.

    Another reasons for starting the business that we think is worth mentioning in this liquor store business plan example is that the trend of drinking is changing from bars to homes. More people are buying alcohol to consume in the comfort of their own home than are going to bars. So, just like a seafood restaurant business plan, we have an opportunity here.

    5.2 Marketing Segmentation

    Another important thing to note before we start this business is the marketing segmentation of the industry we are going to enter. Marketing segmentation focuses on the various categories of the market we will be targeting.

    The main market segments this liquor store business will be serving are the following:

    Small Liquor Store Business Plan - Marketing Segmentation

    5.2.1 Individual Customers

    The main customers of our products will be the people who need a good drink at the end of a long day. We will cater for the needs of these customers and will make sure that they get the best liquor from us.

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    5.2.2 Retail Stores

    Retails stores in the area source liquor from other cities and that is not feasible for them. We will offer them better rates and they will purchase the products from us on a regular basis.

    5.2.3 Bars

    Bars will be one of the bulk customers of our products. They will buy large amounts of liquor on a regular basis. We might offer them a lower rate as a wholesale discount. These customers will pay us on a routine basis and not individually for every purchase/delivery.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Individual Customers47%49,00051,00053,00055,00056,00010.00%
    Retail Stores30%34,00035,00037,00039,00040,00010.00%

    5.3 Business Target

    Our business targets are:

    • To establish our name as a dependable and reliable supplier of Grade-A liquor.
    • To expand to more locations and make our business a chain of stores.
    • To provide the best products and services and gain high customer satisfaction while we are at it.
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    5.4 Product Pricing

    The prices will be mainly based on the prices of the manufacturers we will be sourcing the stuff from. However, we will keep out profit margin low and offer lower prices than the competitors to earn some customers and then we will increase the prices when we have made a name for ourselves. This is the same approach as we used in the gourmet food store business plan.

     Marketing Strategy of Small Liquor Store

    Now that we have established all the things necessary for starting a small liquor store, the next thing to focus on is the liquor store marketing plan. There can be a lot of liquor store marketing strategies but we have to find out the one that works the best for our case.

    The things that influence the marketing strategy are the following and they are more or less the same as those for a butcher shop business plan.

    6.1 Competitive Analysis

    Harry’s Liquor Outlet will have the following competitive advantages:

    1. The owner of this business has a lot of experience in the liquor business.
    2. There is no reputable liquor store in the area where we are going to start this business.
    3. We are offering all the major liquor brands and all of them are decided after asking the people of the area which brands they will buy.

    6.2 Sales Strategy

    • We will use all the social, electronic and print media channels to advertise our business in the area.
    • We will have social media pages and our own online store to market and sell the product.
    • We will offer discounted rates for the first two months to boost sales in the start.

    6.3 Sales Monthly

    Small Liquor Store Business Plan - Sales Monthly

    6.4 Sales Yearly

    Small Liquor Store Business Plan - Sales Yearly

    6.5 Sales Forecast

    Small Liquor Store Business Plan - Unit Sales
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Liquor Supply47,00049,82052,809
    Signature Drinks37,00039,22041,573
    Spirit Supply33,00034,98037,079
    Remote Bar Services for parties12,00012,72013,483
    TOTAL UNIT SALES129,000136,740144,944
    Unit PricesYear 1Year 2Year 3
    Liquor Supply$56.00$64.96$75.35
    Signature Drinks$33.00$38.28$44.40
    Spirit Supply$62.00$71.92$83.43
    Remote Bar Services for parties$40.00$46.40$53.82
    Liquor Supply $2,632,000.00 $3,236,307.20 $3,979,363.33
    Signature Drinks $1,221,000.00 $1,501,341.60 $1,846,049.63
    Spirit Supply$2,046,000.00 $2,515,761.60 $3,093,380.46
    Remote Bar Services for parties$480,000.00 $590,208.00 $725,719.76
    TOTAL SALES$6,379,000.00 $7,843,618.40 $9,644,513.18
    Direct Unit CostsYear 1Year 2Year 3
    Liquor Supply$55.00$61.00$70.00
    Signature Drinks$31.00$34.00$40.00
    Spirit Supply$60.00$67.00$79.00
    Remote Bar Services for parties$38.00$41.00$49.00
    Direct Cost of Sales   
    Liquor Supply $2,585,000.00 $3,039,020.00 $3,696,644.00
    Signature Drinks $1,147,000.00 $1,333,480.00 $1,662,928.00
    Spirit Supply$1,980,000.00 $2,343,660.00 $2,929,225.20
    Remote Bar Services for parties$456,000.00 $521,520.00 $660,676.80
    Subtotal Direct Cost of Sales$6,168,000.00 $7,237,680.00 $8,949,474.00

    Personnel plan

    The next thing we need to talk about in this business plan for alcoholic beverage store is the people that we will need to start and run the business. We need to plan the workforce in such a way to run the business with the maximum possible efficiency without being an unnecessary load on the business.

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    7.1 Company Staff

    Here is a list of the people who will run Harry’s Liquor Outlet:

    • Harry Castle will be the owner and CEO of the business.
    • 1 Manager will be hired to run the day-to-day operations of the liquor store.
    • 1 Cashier will be needed to manage the register.
    • 1 Web Developer will be hired to run the online store and social media pages of the business.
    • 3 Drivers for the home delivery of products ordered online.
    • 2 Cleaners.
    • 1 Accountant.

    7.2 Average Salary of Employees

    Personnel Plan   
     Year 1Year 2Year 3
    Web Developer$9,000$9,900$10,890
    Total Salaries$84,000 $92,400 $101,640

    Financial Plan

    Lastly, we need to discuss the cost that will be incurred by Harry to start this business. Let’s see we need how much to start a liquor store.

    Harry will have to arrange money for the following:

    • Acquiring a location to start the store.
    • Buying the stock to start the business.
    • The money needed for the salaries of the staff for the first 3 months.
    • The money needed to buy vehicles for delivery.
    • The cost of making an online store and the allied social media pages.

    8.1 Important Assumptions

    General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.12%8.15%8.20%
    Long-term Interest Rate8.28%8.37%8.40%
    Tax Rate24.01%24.10%24.30%

    8.2 Break-even Analysis

    Break-Even Analysis 
    Monthly Units Break-even5344
    Monthly Revenue Break-even$133,200
    Average Per-Unit Revenue$236.00
    Average Per-Unit Variable Cost$0.69
    Estimated Monthly Fixed Cost$161,500

    8.3 Projected Profit and Loss

    Pro Forma Profit And Loss   
     Year 1Year 2Year 3
    Sales$6,379,000 $7,843,618 $9,644,513
    Direct Cost of Sales$6,168,000 $7,237,680 $8,949,474
    TOTAL COST OF SALES$6,168,000 $7,237,680 $8,949,474
    Gross Margin$211,000 $605,938 $695,039
    Gross Margin %3.31%7.73%7.21%
    Sales and Marketing and Other Expenses$120,000$123,000$126,000
    Leased Equipment$0$0$0
    Payroll Taxes$26,000$28,000$30,000
    Total Operating Expenses$240,840 $254,530 $269,140
    Profit Before Interest and Taxes($29,840)$351,408$425,899
    Interest Expense$0$0$0
    Taxes Incurred($5,968)$70,282$85,180
    Net Profit($23,872)$281,127$340,719
    Net Profit/Sales-0.37%3.58%3.53%

    8.3.1 Profit Monthly

    Small Liquor Store Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Small Liquor Store Business Plan - Profit Yearly

    8.3.3 Gross Margin Monthly

    Small Liquor Store Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Small Liquor Store Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Small Liquor Store Business Plan - Projected Cash Flow
    Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 3
    Cash from Operations   
    Cash Sales$56,000$60,480$65,318
    Cash from Receivables$16,000$17,280$18,662
    SUBTOTAL CASH FROM OPERATIONS$72,000 $78,480 $84,758
    Additional Cash Received   
    Sales Tax, VAT, HST/GST Received$0$0$0
    New Current Borrowing$0$0$0
    New Other Liabilities (interest-free)$0$0$0
    New Long-term Liabilities$0$0$0
    Sales of Other Current Assets$0$0$0
    Sales of Long-term Assets$0$0$0
    New Investment Received$0$0$0
    SUBTOTAL CASH RECEIVED$72,000 $79,000 $85,000
    ExpendituresYear 1Year 2Year 3
    Expenditures from Operations   
    Cash Spending$36,000$38,000$40,000
    Bill Payments$21,000$22,000$23,000
    SUBTOTAL SPENT ON OPERATIONS$57,000 $60,000 $63,000
    Additional Cash Spent   
    Sales Tax, VAT, HST/GST Paid Out$0$0$0
    Principal Repayment of Current Borrowing$0$0$0
    Other Liabilities Principal Repayment$0$0$0
    Long-term Liabilities Principal Repayment$0$0$0
    Purchase Other Current Assets$0$0$0
    Purchase Long-term Assets$0$0$0
    SUBTOTAL CASH SPENT$57,000 $61,560 $66,485
    Net Cash Flow$13,000$14,000$15,000
    Cash Balance$28,100$29,000$31,000

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet   
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$25,000$28,000$31,472
    Other Current Assets$1,000$1,000$1,000
    TOTAL CURRENT ASSETS$298,000 $333,760 $375,146
    Long-term Assets   
    Long-term Assets$10,000$10,000$10,000
    Accumulated Depreciation$18,700$20,944$23,562
    TOTAL LONG-TERM ASSETS$27,000 $30,240 $34,020
    TOTAL ASSETS$301,000 $337,120 $379,260
    Liabilities and CapitalYear 4Year 5Year 6
    Current Liabilities   
    Accounts Payable$19,000$21,280$23,919
    Current Borrowing$0$0$0
    Other Current Liabilities$0$0$0
    SUBTOTAL CURRENT LIABILITIES$14,500 $16,240 $18,254
    Long-term Liabilities$0$0$0
    TOTAL LIABILITIES$15,000 $16,800 $18,883
    Paid-in Capital$32,600$32,000$33,000
    Retained Earnings$56,000$61,040$67,144
    TOTAL CAPITAL$274,000 $298,660 $328,526
    TOTAL LIABILITIES AND CAPITAL$289,000 $337,120 $379,260
    Net Worth$271,000$295,390$324,929

    8.6 Business Ratios

    Ratio Analysis    
     Year 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.01%7.77%8.61%3.00%
    Percent of Total Assets    
    Accounts Receivable9.17%10.16%11.26%9.80%
    Other Current Assets2.10%2.33%2.58%2.40%
    Total Current Assets148.80%151.00%152.00%158.00%
    Long-term Assets11.92%11,89%11.93%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.65%4.69%4.73%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.50%7.56%7.63%7.38%
    NET WORTH100.40%101.20%102.13%110.00%
    Percent of Sales    
    Gross Margin95.10%97.67%100.40%99.00%
    Selling, General & Administrative Expenses93.90%96.44%99.14%97.80%
    Advertising Expenses1.64%1.68%1.73%1.40%
    Profit Before Interest and Taxes40.90%42.00%43.18%33.90%
    Main Ratios    
    Total Debt to Total Assets0.20%0.19%0.18%0.40%
    Pre-tax Return on Net Worth74.20%75.00%75.20%75.00%
    Pre-tax Return on Assets93.25%97.91%102.81%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin32.14%33.14%34.16%N.A.
    Return on Equity55.96%57.69%59.48%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.9N.A.
    Collection Days100100100N.A.
    Inventory Turnover32.534.12534.6N.A.
    Accounts Payable Turnover16.316.416.54N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.42.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.03-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$236,000$249,216$263,172N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.790.820.85N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test27.528.129.4N.A.
    Sales/Net Worth2.12.22.2N.A.
    Dividend Payout000N.A.

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